***********************************
Brakke Consulting’s
Animal Health News & Notes for September 9, 2022
Copyright © Brakke Consulting
Editor: Lynn Fondon DVM MBA
************************************
IN THE NEWS:
Brakke Consulting News
AnimalHealthJobs
Earnings News
Dechra
Other News
Animalcare
Archer Daniels Midland
Balchem
Bergstrom Nutrition
Boehringer Ingelheim
Bond Pet Foods
Checkmate Capital Group
Elanco
eniferBio
Fidelis Nutritionals
Freeze Dried Foods NZ
GlobalVetLink
HatchTech
Heart + Paw
Huvepharma
Kiwigarden
Koala Health
MLJ Fund 1
MWI Animal Health
Nestle
NewMetrica
Nutreco
People, Pets, & Vets
PetIQ
Precision Livestock Technologies
Provet Cloud
Skretting
Smart Paws GmbH
Swevet
Trupanion
VetCor
Wilbur Ellis
Ziwi
Zoetis
***************************************
Are you involved in hiring for your company? Then Animal Health Jobs wants to hear from you!
How difficult is it for your company to find the talent that you need? Chances are, it has become more difficult. It’s challenging for HR and talent leaders.
Animal Health Jobs wants to hear your thoughts on the hiring market. We’re conducting a survey to gain a deeper understanding on hiring in the Animal Health Industry. We will share these animal health and nutrition industry specific results with you in future blogs and white papers at Animal Health Jobs.
If you are one of the first 50 respondents to complete the survey, you will be entered into a drawing for a one of two prizes: a free job posting or a free video job advertisement.
CLICK HERE to take the survey!.
**************************************
EARNINGS NEWS RELEASES
- Dechra Pharmaceuticals announced financial results for the fiscal year ended June 30, 2022. Revenue was GBP 681.8 million ($784 million), a year-over-year increase of 12% (+14% at constant exchange rates). Profit after tax was GBP 58.2 million ($67 million), an increase of 5%. North American Pharmaceuticals segment revenue was GBP 275 million ($316 million), an increase of 25%; underlying operating profit for the segment was GBP 87.7 million ($101 million), an increase of 12%. (company website)
*********************************************
COMPANY NEWS RELEASES
- Zoetis announced it has acquired NewMetrica, a Scottish company which uses digital tools designed to measure health-related quality of life (HRQL) in non-verbal species. Using practices developed for human healthcare measurement, NewMetrica developed VetMetrica, which the company says can measure how an animal “feels” about its circumstances from its individual perspective. Financial terms were not disclosed. (org)
- Huvepharma announced it has partnered with HatchTech on an innovative long-term vaccine hatchery project involving HatchTech’s MicroClimer Setters. (Thepoultrysite)
- PetIQ, Inc. announced a stock repurchase program that will enable the Company to repurchase up to $30 million in aggregate of the Company’s outstanding shares of common stock. (company press release)
- Online pet pharmacy Koala Health announced it has raised $20 million in Series A funding. (Axios – subscription)
- VetCor announced that it has acquired People, Pets, & Vets, a veterinary services company with over 150 animal hospitals located throughout the US. Financial terms were not disclosed. (co)
- Heart + Paw announced it has partnered with GlobalVetLink to implement the GlobalVetLink Compliance Assistant in their veterinary hospitals across the Northeast. The GVL Compliance Assistant is a comprehensive SaaS platform designed to streamline animal health compliance for all veterinary practices. (PRnewswire)
- Precision Livestock Technologies (PLT), a provider of artificial intelligence (AI)-based software and hardware solutions for livestock feeding and health, announced it has closed on approximately $1 million in equity financing. The new investment was co-led by MLJ Fund 1 and Checkmate Capital Group. (IHS Markit Connect – subscription)
- Fidelis Nutritionals, a pet company featuring food, treats, and supplements designed specifically for big dogs, has launched the a freeze-dried raw diet dog food crafted specifically for big dogs. (DVM360)
- Bond Pet Foods, a company creating meat proteins through fermentation for pet food applications, announced that it has completed its Series A fundraise totaling $17.5 million. The oversubscribed round includes investment from global food and agriculture pioneers ADM Ventures (Archer Daniels Midland Company) and Cavallo Ventures (Wilbur Ellis). (Pet Age)
- Skretting, a division of Nutreco, and Finnish start-up eniferBio announced an agreement to test Pekilo – a mycoprotein originally developed in the 1970s for use in feed for pigs and poultry – in rainbow trout and Atlantic salmon. Pekilo P65 is made using renewable raw materials and is positioned as a sustainable alternative to soy protein concentrate, without higher production costs. (IHS Markit Connect – subscription)
- Balchem announced it has acquired Bergstrom Nutrition, a manufacturer of methylsulfonylmethane (MSM), a nutritional ingredient with applications in pet health, sports nutrition and joint health. Financial terms were not disclosed. (IHS Markit Connect – subscription)
- EU Boehringer Ingelheim announced the EU launch of Fencovis, a vaccine for the prevention of calf diarrhea. Fencovis is indicated for the active immunization of pregnant heifers and cows to stimulate the development of antibodies against rotavirus, coronavirus, and E. coli F5 (K99) adhesin, resulting in the passive immunization of calves against neonatal diarrhea. (company press release)
- SCANDINAVIA MWI Animal Health announced it has acquired Swevet, an animal health service wholesaler that serves veterinary customers across the Nordic region. Swevet, Sweden’s only full-range animal health service wholesaler, supplies pharmaceuticals, consumables, pet food and equipment to veterinary clinics throughout the country. The company also supplies veterinary customers in Norway, Denmark and Finland, with consumables, pet food and equipment. Financial terms were not disclosed. (company press release)
- UK Animalcare announced it has become the UK distributor of Danilon Gold, an equine NSAID. Danilon Gold – manufactured by Animalcare – was previously marketed by Elanco. (IHS Markit Connect – subscription)
- MEXICO Nestle Mexico announced a $100 million investment to expand production in its Mexican Purina pet food plant. The expansion will create two new production lines in its facility in Guanajuato state. (GlobalPets)
- EU Trupanion announce it has acquired Smart Paws GmbH, a pet insurance provider in Germany and Switzerland. Financial terms were not disclosed. (company press release)
- NEW ZEALAND Pet food manufacturer Ziwi announced it has agreed to purchase Freeze Dried Foods NZ LTD and its subsidiary Kiwigarden Financial terms were not disclosed. (Pet Business)
- UK Provet Cloud, a veterinary practice management software provider, announced a new support package for start-up practices in the UK and Ireland. The package includes pre-built templates, dedicated support during implementation, comprehensive training and 6 months’ free access from go-live to the cloud-based platform. (Vetsurgeon)
*********************************************
ANIMAL HEALTH STOCK PRICE TRACKER
***********************************
ANIMAL HEALTH NEWS
- US – AVIAN INFLUENZA Three million egg laying hens are being euthanized in Ohio after highly pathogenic avian influenza (HPAI) was confirmed by the USDA’s Animal and Plant Health Inspection Service (USDA-APHIS). (Feedstuffs – subscription)
- WORLD – CYBER SECURITY The United Veterinary Services Association has created a set of recommended best practices to help the animal health industry prevent cyberattacks. The recommendations are meant to prevent data breeches and financial loss for distributors, manufacturers and suppliers of animal care products. They follow a ransomware attack that affected more than 700 animal health networks around the world. Recommendations include end user license agreements and multi-factor authentication. (Vet Advantage)
************************************
BRAKKE CONSULTING VIEWPOINT
For those who are Saturday Night Live fans from the late 70’s may recall Roseanne Rosannadanna’s famous line, “It’s always something. If it’s not one thing it’s another”. Gas prices continue to decline. Inflation rates are beginning to moderate. It seems that the recent economic woes are stabilizing and even improving.
The cattle producing states are facing one of the worst droughts in recent history. According to a new survey by the American Farm Bureau Federation, this year’s drought conditions are taking a harder toll than last year’s, as 37% of farmers said they are plowing through and killing existing crops that won’t reach maturity because of dry conditions. In addition, ranchers are being forced to sell off their cattle herds earlier than normal due to extreme drought, as water sources dry out and grass burns up. Ranchers in Texas reported the largest reduction in herd size, down 50%, followed by New Mexico and Oregon at 43% and 41% respectively.
In the short run, there should be reduction in beef prices as the additional supply works its way through the value chain, which is good. However, in the medium/long term, prices should increase as supply moderates while ranchers rebuild their herds which can take years. The animal health companies will likely be adversely impacted this year and into the future by losing potential doses of vaccines, antibiotics, parasiticides and hormonal implants as a result of early cattle harvesting and reduced herd sizes.
There are so many variables out of our control that impact key segments of the US economy. Drought, floods, what’s next…pestilence? Like Roseanne Roseannadanna said, “if it’s not one thing it’s another”.
Randy Freides
***********************************
YOUR VIEW
Last week, we asked where you thing new, innovative drug discoveries in Animal Health will come from. 38% of you said from the top global animal health companies, and an equal number said from small animal health startups. 11% thought they will come from large human pharma companies, and 8% said from small human health startups.
This week
English (United States) 
Portuguese